Vanuatu News: Brokers Must Be Physically Presence Mandated By Vanuatu

The new restrictions did not come as a surprise, since the local regulator had been preparing for them for months.

So far, only four forex and contracts for difference (CFDs) brokers have complied with the Vanuatu Financial Services Commission's new regulations: FXPrimus, Titan FX, TradeNext, and MFM Securities (VFSC).

“Our regulator aims to attract only the most serious candidates.” “If they are sincere in their objectives and devoted in their approach, and they plan to properly manage their company in Vanuatu, the VFSC will be flexible and patient,” said Martin St-Hilaire, Chairman of the Financial Markets Association of Vanuatu.

A Popular Offshore Jurisdiction

Vanuatu was a popular choice for offshore brokers. Its lax restrictions attracted more than 600 brokers at its height in 2017. However, some of these locally licensed brokers were found to be engaging in fraud, prompting the Financial Action Task Force (FATF) to place Vanuatu on its gray list.

The FATF certified the jurisdiction a year later when the local financial markets authority demanded a 5 million Vatu (roughly $50,000) bond deposit for all brokerages, among other measures.

The prior tightening of laws reduced the number of Vanuatu-licensed brokers to roughly 150 by 2020, and this number is anticipated to drop even further owing to the higher expense of maintaining a Vanuatu license.

“A single P.O. Box and certain accounting entries will no longer be enough to function in Vanuatu,” stated St-Hilaire. “Our government aims to bring about a sea shift in the way it conducts business by migrating from an offshore, sheltered financial hub to an onshore, transparent FinTech center.”

About Vanuatu

The Vanuatu Financial Services Commission (VFSC) was legally founded in December 1993, when the Vanuatu Parliament passed the Vanuatu Financial Services Commission Act No. 35 of 1993. Previously, we served as the Registrar of Companies and the Official Receivership Department of the Treasury under the then-British Administration and, after independence in July 1980, the Ministry of Finance and Economic Management.

What Is Vanuatu's Primary Role？

In summary, the VFSC's principal role is to run an effective and efficient registry. It has also been responsible for regulating and monitoring Vanuatu's non-deposit-taking financial services business. This job would entail marketing the sector internationally and defending its image against unsavory businesspeople.

Vanuatu's Vision and Mission

In the following pages, we outline the general direction that the Commission will take in the short to medium term. Planning and organization are critical to the success of any company. Here, we have outlined the Commission's Vision, Mission, and intended Key Outcomes, as well as our values and conduct, as well as our business goals. Our task is to develop and execute effective tactics to attain these objectives. We at the Commission understand the advantages that a well-managed and expanding financial services industry can offer to Vanuatu, and we are all dedicated to seeing it through.

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